McCormick to buy French’s Mustard, Frank’s Red Hot in $4.2 billion deal
McCormick & Co. will account for more space in U.S. cupboards after agreeing to buy French’s mustard and Frank’s Red Hot sauce in a deal worth $4.2 billion.
The spice maker, which is based in Sparks, Md., near Baltimore, will acquire the food business of Reckitt Benckiser, the British consumer-goods company, and intends to finance the deal through a combination of debt and equity. The business includes the French’s, Frank’s Red Hot and Cattlemen’s brands.
The sale, announced late Tuesday, came after Reckitt Benckiser announced a strategic review in April of its food business.
Reckitt Benckiser has moved away from the food business in recent years and increasingly focused on consumer health products, including Durex condoms, Nurofen pain relievers and Scholl foot care.